On technological revolutions and capitalism

Technological revolutions drive economic progress through a recurring cycle of creative destruction, financial frenzy, and eventual institutional realignment. Capitalism’s legitimacy depends on the state’s ability to ensure that private profit-seeking generates broad societal benefits. While the current digital paradigm uniquely replaces mental labor, it remains trapped in a financialized "installation" phase that exacerbates inequality and environmental degradation. To achieve a sustainable global golden age, governments must move beyond passive regulation, actively steering investment toward green transitions and implementing structural reforms like universal basic income. Shifting from a product-possession model to a service-based rental and maintenance framework offers a viable path to extend product lifespans and reduce waste. Multidisciplinary scholar Carlota Perez emphasizes that without proactive state intervention to align corporate incentives with public welfare, these technological shifts will continue to fuel social resentment and populist instability.